More Americans Participate in Credit Card Rewards Programs Than 401ks

401k, 401k plan, retirement savings, 401k accounts

Many would be wise to re-prioritize.

No surprise, Americans are putting off saving for retirement in lieu of more living in the moment—a tempting but potentially costly mistake (in more ways than one).

More people are enrolled in credit card rewards than are contributing to 401ks or other retirement savings accounts, according to a recent report by Value Penguin.

Examining data collected by Claritas Financial, Value Penguin discovered 61 percent of U.S. households participate in at least one credit card rewards program, while just 58 percent use any type of retirement savings vehicle.

The report pointed to instant gratification as a potential reason that consumers behave this way.

Other explanations?

For one, there’s the aggressive nature and invasive prevalence of financial institutions’ credit card marketing efforts. Value Penguin pointed to research by EMI Strategic Marketing, noting several top credit card issuers in America spend upwards of a billion dollars per year on advertising.

Plus, retirement accounts require participants to give up part of their income now in order to enjoy the financial benefit of doing so later—sometimes decades down the line. In contrast, many credit cards are free or low-cost. And for those who pay off their balance each month, rewards programs are seemingly offering something for nothing—right now.

The report assessed data from the 100 most populated cities in the country. Other key findings by Value Penguin include:

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